Bonds Increased By Around 60 Paise With Dropping Crude - 2 Sep 08

Bonds increased by around 60 paise with dropping crude prices generating a lot of purchasing interesting in the market. There was anticipation in the market that decrease in oil prices will moderate inflation. Oil prices had declined to $114 per barrel. With the Reserve Bank getting in the rupee forward contracts market, liquidity was comfortable in the system, despite the CRR hike coming into effect from August 30. Total traded volumes on the order matching system were higher at Rs 6,290 crore (Rs 5,670 crore). The 8.24 per cent-10 year-2018 paper opened at Rs 96.8 (8.73 per cent YTM) and reached an intra-day low of Rs 96.49 (8.78 per cent YTM). It closed at Rs 97.54 (8.61 per cent YTM), against the previous close of Rs 96.95 (8.71 per cent YTM). A lot of purchasing interest was also seen in the 8.24 per cent-19 year-2027 paper. The paper opened at Rs 87.74 (9.67 per cent YTM) and ended at Rs 89.25 (9.48 per cent YTM).